How St George’s New Discovery Could Transform Rare Earths Supply at Araxá

A Breakthrough Discovery at East Araxá

St George Mining Limited (ASX – SGQ) has announced a major breakthrough at its 100%-owned Araxá Project in Minas Gerais, Brazil, unveiling a new high-grade rare earths and niobium discovery just one kilometre east of its existing world-class resource. The initial reverse circulation (RC) drilling assays from the previously unexplored East Araxá area have delivered thick intervals of mineralisation starting from surface, with grades reaching up to 16.87% total rare earth oxides (TREO) and 4.06% niobium pentoxide (Nb₂O₅).

This discovery not only confirms the continuity and depth extent of the mineralisation but also highlights the potential to significantly expand the Araxá Mineral Resource Estimate (MRE), which already ranks among the highest-grade undeveloped rare earth deposits globally.

Exceptional Grades and Strategic Elements

The assays reveal particularly strong concentrations of neodymium and praseodymium (NdPr), with values up to 3.96% NdPr, elements essential for manufacturing permanent magnets used in electric vehicles and advanced defense technologies. Additionally, the East Araxá mineralisation contains elevated levels of heavy rare earth elements such as dysprosium, terbium, lutetium, and gadolinium, as well as samarium, a critical component in samarium-cobalt magnets employed in F-35 fighter jets and other military equipment.

These findings underscore Araxá’s competitive edge as a carbonatite-hosted deposit, akin to the Mountain Pass mine in the USA and Mt Weld in Australia, both major producers outside China. The near-surface, free-digging nature of the mineralisation supports the prospect of a low-cost open-pit operation in a well-established mining region.

Ongoing Drilling and Strategic Partnerships

St George is advancing a multi-rig drilling campaign, with three diamond drill rigs operating around the clock to expand and define the resource along strike. The company targets an inferred resource estimate for East Araxá by the fourth quarter of 2025, which would add substantial volume and grade to the existing MRE.

Complementing the exploration progress, St George has forged a strategic alliance with US-based REAlloys Inc, a leading magnet materials company with defense supply contracts. This partnership aims to develop a secure, domestic supply chain for rare earth magnet materials in the United States, addressing critical supply vulnerabilities highlighted by recent geopolitical tensions.

Navigating Permitting and Market Positioning

The Araxá Project benefits from strong government support, including expedited permitting initiatives under Brazil’s MAGBRAS program, which seeks to establish an integrated rare earth supply chain within the country. However, some environmental and land tenure challenges remain, with portions of the project area classified as legal reserves or preservation zones requiring regulatory approvals.

Despite these hurdles, St George’s experienced in-country team and established relationships with local authorities position the project well for smooth advancement. The company’s recent maiden resource estimate already confirms Araxá as a globally significant niobium and rare earths deposit, and this new discovery promises to enhance its stature further.

Looking Ahead

With more than 8,000 metres of drilling still planned and first assays from deeper diamond drilling expected within weeks, St George is poised for a period of strong newsflow. The combination of high-grade mineralisation, strategic partnerships, and supportive government frameworks places Araxá as a compelling development opportunity in the critical minerals sector.